Sales Strategy for Promoting Buyers to Attain Housing Mortgages of Real Estate Development Companies Registered in The Stock Exchange of Thailand

Abstract

The housing mortgage offered by financial institutions is significant for purchasing a home. However, due to the situation financial institutions are more cautious about loan granting. Real estate development companies design sales strategies for promoting buyers to attain housing mortgages from the financial institution. This article aims to explore the formats and methodologies of implementing the sales strategy for promoting buyers to attain housing mortgages of real estate development companies registered in the stock exchange of Thailand. By collecting data from the 2022 annual reports (56-1 One Reports), websites, and Facebook pages of 33 real estate development Companies. Qualitative data were comparatively analyzed in terms of formats and methodologies among large, medium, and small-sized companies.

The study found that: 1) Real estate development companies registered in the stock exchange of Thailand implement the sales strategy for promoting buyers to attain housing mortgages in 8 formats and 17 methodologies throughout the pre-construction, construction, and post-construction phases. 2) Real estate development companies most often implement these sales strategies in the purchase decision stage of the consumer decision-making process especially 3-6 months before the construction project is complete. Large-sized companies primarily focus on the purchase decision stage, medium-sized companies emphasize the evaluation of alternatives stage, and small-sized companies place particular emphasis on the information search stage. 3) Real estate development companies differently implement these sales strategies based on the types and prices of the housing. For instance, high-rise projects usually use the strategy of reducing monthly installment expenses, while low-rise projects usually use the strategy of building confidence for customers to attain housing mortgages. In terms of pricing, units priced below 3.00 million baht and 3.00-10.00 million baht usually use the strategy of building confidence for customers to attain housing mortgages. Meanwhile, Residential units priced over 10 million baht usually use the strategy of reducing monthly payment on the installment loan.

The results of this study point out the necessity of promoting buyers to attain housing mortgages by using sales strategies that conclude into 4 points: 1) providing financial literacy, 2) expense reduction for buyers, 3) assessing loan repayment capacity, and 4) increasing the opportunities to attain housing mortgage through various sales methods. Encouraging people to plan their housing finances before the home-buying process can enhance preparedness and planning efficiency for prospective buyers.